Income earned by a mutual concern from mutual activities is no taxable whereas income earned from non-mutual activities is chargeable to tax. Step 1 Compute Deficiency = Expenditure incurred by such Applicability: Applicable to trade or professional or similar associations, which do not distribute any part of income to its members. Exception: Association for the […]
Read More1. Nature of expenses Any sum payable by an employer by way of contribution to PF or superannuation fund or other fund for the welfare of the employees Tax, Duty, Cess or any fee payable Bonus or commission payable to employees Interest payable on loan or borrowing from a public financial institution or interest on […]
Read More1. Applicability: The assessee has acquired any capital asset from abroad for the purpose of his business or profession. The purchase of capital asset is on credit or on deferred payment or on loan in foreign currency. 2. Adjustment: If there is an increase or reduction in liability at the time of making payment- a. […]
Read MoreApplicability: Any assessee carrying on business of prospecting or extraction or production of mineral oil. Condition: The Government of India or any person authorized by it should have entered into an agreement with such an assessee and the same is duly approved by the parliament. Admissible expenditure: Allowance specified in the agreement in relation to […]
Read MoreAny provision for gratuity in the books of accounts shall not be allowed as a deduction unless- 1. The provision is made for any contribution towards an approved gratuity fund, or 2. The provision is for gratuity, which has become due and payable during the previous year. Payment to any unrecognized welfare fund (Section 40A […]
Read More1. Nature of Expenditure: If an assessee incurs any expenditure in respect of which payment in excess of Rs.35, 000 in case of payment for plying, hiring or leasing goods carriages and Rs. 20,000 in any other case, is made otherwise than by an account payee cheque or an account payee bank draft, 100% of […]
Read MoreAllowing Adjustment Of Losses Of New Hospital Or New Hotel Against Can Be Set Off Against Incomes Of Existing Specfified Business.
Read MoreApplicability: All assesses Nature of Expenditure: contribution made to approved association or institution for implementation of rural development programme and contribution to National fund for rural development or National urban poverty eradication fund. Deduction: Actual expenditure incurred. Subsequent withdrawal of approval: If the approval accorded to the university, college etc. is withdrawn subsequent to payment […]
Read MoreApplicability: The assessee should be an Indian Company or Non-corporate resident assessee. Eligible Expenditure: Expenditure incurred wholly for- Operation relating to prospecting of such mineral or group of minerals specified in schedule VII or On the developments of mine or other natural deposits of such mineral or group of minerals. As reduced by- Expenditure met […]
Read MoreApplicability: All assesses Conditions: The retirement should be in accordance with the scheme of voluntary retirement. The payment can be made in any year, each such payment independently being admissible for amortization over a period of five years. Deduction: The amount of expenditure so paid will be allowed in 5 equal installments commencing from the […]
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